Morning News Call - India, July 7

Reuters Staff

6 Min Read

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FACTORS TO WATCH
10:00 am: Senior corporate and industry executives at CII Realty &
Infrastructure Conclave in Mumbai.
12:30 pm: Food Minister Ram Vilas Paswan briefs media in New Delhi.
4:00 pm: Aviation Secretary Rajiv Nayan Choubey and Skill Development
Minister Rajiv Pratap Rudy at aviation security seminar in Manesar, Gurugram.
5:00 pm: RBI releases weekly forex reserves data in Mumbai.
LIVECHAT - QUIZ EAST
The first of our Friday quizzes at 11:00 am IST focuses on Asia and the
week's top news. Tests your wits and googling speed. To join the conversation,
click on the link: here
INDIA TOP NEWS
• IndiGo says keen only on Air India's international, low-cost units
India's biggest airline IndiGo said on Thursday it was keen to buy
state-owned carrier Air India's international arm and low-cost division Air
India Express rather than the whole business if India decides to sell its flag
carrier.
• Tax hike could dampen Indian gold demand in short term -WGC
An increase in taxes on gold sales in India could curb short-term demand
from the world's No. 2 consumer of the metal, the World Gold Council said.
• Ethnic unrest leaves world's tea drinkers thirsty for $1,800 Darjeeling
brew
Ethnic unrest in India's Darjeeling hills has wiped out the harvest of the
world's most expensive tea, disrupting supplies to European buyers and
potentially pushing prices higher.
• India, Israel launch innovation fund during Modi visit
India and Israel have established a $40 million joint innovation initiative
fund to increase economic cooperation and boost research and development within
both countries.
• Bhushan Steel Q4 loss bigger than stated earlier
Bhushan Steel Ltd reported a March-quarter loss that was much bigger than
stated earlier in its unaudited results, as the debt-laden steelmaker was hurt
by higher costs.
• Online grocery startup Jumbotail raises $8.5 million in funding
Jumbotail, an Indian startup building an online wholesale marketplace for
groceries, has raised $8.5 million in a funding round led by venture firm
Kalaari Capital with the participation of Nexus Venture Partners.
GLOBAL TOP NEWS
• All eyes on Trump-Putin dynamics as they meet for first time at G20
U.S. President Donald Trump and Russian President Vladimir Putin are set to
size each other up in person for the first time on Friday in what promises to be
the most highly anticipated meeting on the sidelines of the G20 summit.
• Trump pledges to act 'very strongly' on North Korea missile threat
U.S. President Donald Trump vowed on Thursday to confront North Korea "very
strongly" following its latest missile test and urged nations to show Pyongyang
there would be consequences for its weapons program.
• Samsung Electronics tips record Q2 profit as memory prices surge
Tech giant Samsung Electronics estimated a record quarterly operating profit
for April-June, propelled by a memory chip boom that analysts say will continue
to pad margins for the rest of 2017.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty Futures were at 9,640.50, down 0.28 percent from previous
close.
• The Indian rupee could edge higher against the dollar in early trade,
tracking overnight decline in the greenback following a weaker-than-expected
U.S. private employment data.
• Indian government bonds are likely to trade lower amid a rise in U.S.
Treasury yields and prospects of hawkish global central bank policies. The yield
on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.53
percent-6.58 percent band today.
GLOBAL MARKETS
• U.S. stocks were sharply lower on Thursday after disappointing labor
market data clashed with the possibility of a more hawkish Federal Reserve,
while rising tensions in the Korean peninsula providing additional pressure.
• Asian shares lost ground after a weak session on Wall Street, while global
sovereign debt yields were elevated across the board on bets the European
Central Bank is moving ever closer towards unwinding its massive monetary
stimulus.
• The dollar gained in Asian trading, getting a leg up against the yen after
the Bank of Japan increased its purchases of Japanese government bonds in a move
aimed at stemming a rise in yields.
• U.S. Treasury yields rose on Thursday, with benchmark yields touching
nearly eight-week highs, on the prospect of hawkish global central bank policy
and concern that rising oil prices could spur inflationary pressures.
• Oil prices fell by more than 1 percent, with U.S. crude futures dipping
below $45 per barrel as news of a rise in U.S. production added to earlier
reports that OPEC output was also on the rise.
• Gold prices inched down to hover around their lowest in nearly two months,
with investors waiting for key U.S. non-farm payrolls data later in the day.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.74/64.77 July 6 -$2.36 mln $170.58 mln
10-yr bond yield 6.93 Month-to-date -$297.82 $283.81 mln
Year-to-date $8.29 bln $17.72 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.78 Indian rupees)
(Compiled by Benny Thomas in Bengaluru)